Stealth Address in the Crypto World: Security and Privacy in Transactions

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Bittime  - Security and privacy are major concerns for users. One technology that has emerged to maintain privacy in crypto transactions is Stealth Address, or what is known as a "stealth address". 

In this article, we will explore the concept of stealth addresses and how it can improve security and privacy in the crypto ecosystem .

What is a Stealth Address?

Stealth Address is an important innovation in the crypto world that helps increase privacy and security in transactions.

By hiding the identity of the recipient and sender as well as the amount being transferred, Stealth Address provides an additional layer of security for crypto users.

As crypto technology continues to develop, it is important to understand and adopt Stealth Address to increase privacy and security in our crypto transactions.

Difference between Stealth Address and Regular Wallet Address

Stealth Addresses and regular wallet addresses differ in the way they function and the level of privacy they provide in crypto transactions.

1. Stealth Addresses

• High Privacy

A Stealth Address is created for each transaction, hiding the identity of the true recipient from other parties not involved in the transaction.

• Unique for Each Transaction

Every time someone receives a payment, a new Stealth Address is created, increasing security and privacy.

• Anonymity Capability

Stealth Address allows users to remain anonymous in transactions, reducing the risk of identity theft or transaction tracing by third parties.

Also Read: What is a Hierarchical Deterministic Wallet (HD Wallet)?

2. Regular Wallet Address

• Related to Permanent Identity

Regular wallet addresses are associated with a persistent user identity, and can be used repeatedly to receive payments.

• Easier to Track

Regular wallet addresses can be more easily traced by other parties, as they remain associated with a known user identity.

• Less Privacy

Regular wallet addresses tend to have a lower level of privacy because they can be easily associated with a user's identity.

Also Read: What is Slippage in Crypto

How Stealth Addresses Work

Stealth Address works in a sophisticated way to hide the identity of the actual recipient in a crypto transaction.

Here are the general steps on how Stealth Address works.

1. Unique Address Creation

When someone wants to receive payment in crypto using a Stealth Address, a cryptographic algorithm is used to create a new, unique Stealth Address for each transaction.

2. Receiver Lock

The recipient has a private key that corresponds to the Stealth Address. This key will be used to decrypt transactions sent to the Stealth Address.

3. Payment Delivery

The sender creates the transaction and sends the payment to the newly created Stealth Address. But Stealth Address is not directly linked to the recipient's identity.

4. Blockchain Scanning

Although the Stealth Address is not linked to the recipient's identity, the blockchain will record the transaction. This allows recipients to monitor transactions coming into their Stealth Address.

5. Decryption by Recipient

When a transaction goes to a Stealth Address, the recipient uses their private key to decrypt the transaction and access the funds sent.

6. Privacy and Anonymity

In this way, Stealth Address provides a high level of privacy to the recipient, as their identity is never revealed in the transaction. It also allows users to remain anonymous in the crypto ecosystem.

Also read:

Advantages and Disadvantages of Stealth Address

The following are some of the advantages and disadvantages of using Stealth Addresses in crypto transactions.

1. Advantages of Stealth Address

• High Privacy

One of the main advantages of Stealth Address is that it provides a high level of privacy. The actual identity of the recipient is not revealed in the transaction, preserving user confidentiality.

• User Anonymity

By using Stealth Address, users can remain anonymous in their transactions. This provides an additional layer of security for users who want to protect their identity in the crypto ecosystem.

• Higher Security

Stealth Address helps increase transaction security by hiding the recipient's identity. This reduces the risk of identity theft or phishing attacks that could occur if the recipient's address is public.

• Protection Against Transaction Tracing

By hiding the recipient's identity, Stealth Address helps protect users from tracking transactions by unauthorized or unwanted third parties.

Also Read: Inflationary vs Deflationary Tokens: Understanding the Difference and Impact

2. Lack of Stealth Address

• Additional Complexity

Using a Stealth Address can add a level of complexity to the crypto transaction process. Users may need to understand cryptographic technology more deeply to use Stealth Address correctly.

• Lack of Awareness

Although Stealth Address offers a high level of privacy, many users may not be aware of or understand the benefits of using Stealth Address. This may reduce the adoption of this technology.

• Support Limitations

Some crypto wallets may not support Stealth Addresses, leaving users to search for compatible wallets or use alternative methods to keep their transactions private.

How to Buy Crypto on Bittime

You can buy and sell crypto assets in an easy and safe way via  Bittime .  Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on  Bittime ,  make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into  your wallet . For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Learn  Complete Guide How to Buy Crypto on Bittime .

Monitor price chart movements  for Bitcoin (BTC) ,  Ethereum (ETH ) ,  Solana (SOL)  and other cryptos to find out today's crypto market trends in real-time on Bittime.

Also Read:
What is a Shielded Address?

Vanity Address in Cryptocurrency

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DISCLAIMER : This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.